According to sources, petrol prices may be hiked by Rs 3, diesel by Rs 2 and LPG by Rs 8. The cabinet briefing on the price hike is going to be held at noon. The Finance Minister P Chidambaram will also have a separate briefing on the oil price hike at the same time.
Prime Minister Manmohan Singh is also going to address the nation on reasons for the price increase at 8.30 in the evening. He had hinted at a price rise on Monday saying that the trend of subsidising fuel prices "cannot continue forever".
According to a petroleum ministry official, the decision on price rise might go to the Cabinet Committee on Economic affairs for a final ratification. The government has been deliberating increasing auto and cooking fuel prices for over 10 days after global crude oil prices peaked to $135 per barrel last week.
Deora has been pushing for Rs 10 a litre increase in petrol prices, Rs 5 per litre increase in diesel prices and Rs 50 per cylinder raise in cooking gas prices. However, prices of petrol are likely to be raised by not more than Rs 5 a litre and diesel by Rs 2 a litre.